Core concepts of accounting information systems 13 by simkin norman chapter 05

Prepared by Paula Funkhouser
University of Nevada, Reno

Core Concepts of Accounting Information Systems, 13th Edition
Mark G. Simkin ● Jacob M. Rose ● Carolyn S. Norman

Documenting
Accounting
Information
Systems
Chapter 5

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Chapter 5:

Documenting Accounting
Information Systems
•

Introduction

•

Why Documentation Is Important

•

Primary Documentation Methods

•

Other Documentation Tools

•

End-user Computing And Documentation

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Why Documentation Is Important
1. Depicting how the system works
2. Training users
3. Designing new systems
4. Controlling system development and
maintenance costs
5. Standardizing communications with others

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Why Documentation Is Important
6. Auditing AISs
7. Documenting business processes
8. Complying with the Sarbanes-Oxley Act
9. Establishing accountability

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Example Flowchart

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Primary Documentation Methods
Data Flow Diagrams
Document Flowcharts
System Flowcharts
Process Maps

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Data Flow Diagrams
Uses
 Used in systems development process
 Tool for analyzing an existing system
Types
 Context
 Physical
 Logical
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Data Flow Diagram
Symbols

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Types of DFDs
Context Diagrams
 Overview of the system
 High-level
Physical Data Flow Diagrams
 Focuses on the physical entities of organization
Logical Data Flow Diagrams
 Emphasizes tasks of participants

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Context Diagram

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Physical Data Flow Diagrams
Focus on physical entities, tangible documents, and reports

flowing through the system
List job titles of employees
Simple, more readable, and easier to interpret

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Physical Data Flow Diagrams

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Logical Data Flow Diagrams
Identifies what participants do
Bubble indicates a task the system performs
Help designers decide:
 System resources to acquire
 Activities employees must perform
 How to protect and control these systems

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Logical Data Flow Diagrams

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Decomposition
Exploding data flow diagrams to create more
detail
Level 0 data flow diagrams


Exploded into successive levels of detail (3.0 – Process
Paycheck)

Level 1 data flow diagrams



3.1 – Compute gross pay
3.2 – Compute payroll deductions
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Decomposition – Exploded View of
“Process Paycheck” (3.0)

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Guidelines for Drawing DFDs
Avoid detail in high level DFDs

Approximately five to seven processes in each
Logical DFD
Different data flows should have different names
All data stores have data flows into and out of
them, unless they are used for archiving
Include temporary files
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Guidelines for Drawing DFDs
Final recipients of system information are
external entities
Personnel or departments processing data of
the current system are internal entities
Display only normal processing routines in
high-level DFDs
Use only one entity to represent several system
entities that perform the same task
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Document Flowcharts
Traces the physical flow of documents through an
organization
Used to analyze systems for weaknesses in controls and
reports
Begins by identifying departments and groups that handle
the documents

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Common Document Flowcharting Symbols

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A Simple Document Flowchart

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A Document Flowchart

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Guidelines for Drawing Document
Flowcharts
Identify all departments involved
Classify documents and activities by department
Identify documents by numbers or color
Account for the distribution of each copy of a document.

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Document Flowcharting Guidelines
Use on-page and off-page connectors
Coordinate connectors by letter or number
Annotate unclear activities
Identify filing sequence when necessary
Avoid acronyms that could cause confusion
Consider automated flowchart tools

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Study Break #1
The diagram here is most likely a:

A. Document flowchart
B. System flowchart
C. Data flow diagram
D. Program flowchart

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